Abiomed jumps on massive VA order for Impella pumps

August 26, 2013 by Arezu Sarvestani

A new Veterans Administration contract for Impella heart pumps could boost Abiomed's revenues by 20%.

Abiomed jumps on massive VA order for Impella pumps

Massachusetts-based Abiomed (NSDQ:ABMD) won a lucrative 5-year contract to provide its flagship Impella heart pumps to the Veterans Administration, a deal that could boost the medical device maker's revenue by 20%.

Abiomed can provide Impella to about 170 VA medical facilities, more than 40 Defense Dept. hospitals and other federal agencies via an automated online system, according to a company statement.

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Abiomed chairman, president & CEO Michael Minogue said that the deal could be a huge boon for the company's top line, the Boston Business Journal reported. That's great news for the device maker, which started fiscal 2014 in the red.

ABMD shares jumped on the news today, closing at $23.19, a 3.4% increase on the day.